Amazon Stock: Better Than The Numbers Suggest At First Glance


  •, Inc.’s ROIC has returned to positive territory, settling at 12.99% with a 3-year median of 10.91%.
  • The effective tax rate and net income have impacted Amazon’s capital efficiency and growth.
  • Amazon’s liquidity is strong, with an interest coverage ratio of 174x, surpassing the average for non-bank companies in the S&P 500.

Amazon prime boxes and envelopes delivered to a front door of residential building

Daria Nipot

The Amazon Investment Thesis

Since the last time I wrote about, Inc. (NASDAQ:AMZN), the company has outperformed the S&P 500 Index (SP500) by nearly twice as much. At the

Analyst’s Disclosure: I/we have a beneficial long position in the shares of META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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